Freshworks Inc. reported a total revenue of $838.8 million for the fiscal year ending December 31, 2025, marking a 16% increase from $720.4 million in 2024 and a 21% increase from $596.4 million in 2023. The company achieved a net income of $183.7 million in 2025, a significant turnaround from a net loss of $95.4 million in 2024 and $137.4 million in 2023. This improvement in profitability is attributed to a combination of increased revenue from existing customers and new customer acquisitions, alongside a reduction in operating expenses.
The company experienced notable operational growth, with nearly 75,000 paying customers as of December 31, 2025, up from over 72,200 the previous year. Freshworks' annual recurring revenue (ARR) from customers contributing more than $5,000 increased to 91% of total ARR, reflecting the company's successful strategy in expanding its customer base and increasing product adoption. The net dollar retention rate improved to 108% in 2025, up from 103% in 2024, indicating effective customer retention and expansion efforts.
Strategically, Freshworks made significant acquisitions, including D42 Parent, Inc. in June 2024 for approximately $238.1 million, which has been integrated into its financial results since the acquisition date. In January 2026, the company completed the acquisition of FireHydrant, Inc., a provider of AI-powered incident management software, further enhancing its product offerings. These acquisitions are expected to contribute to future growth by expanding Freshworks' capabilities in IT asset management and incident management.
The company also reported a decrease in total operating expenses to $699.5 million in 2025, down from $745.7 million in 2024. This reduction was primarily due to lower stock-based compensation expenses following the resignation of the former Executive Chairman and a restructuring plan initiated in November 2024. Freshworks continues to invest in research and development, sales, and marketing to support its growth trajectory, with a focus on expanding its global presence and enhancing its product suite.
Looking ahead, Freshworks anticipates ongoing challenges from macroeconomic conditions, including inflation and currency fluctuations, which may impact future revenue growth. However, the company remains optimistic about its ability to attract new customers and expand within its existing customer base, supported by its product-led growth strategy and continued investment in innovation.
About Freshworks Inc.
Freshworks Inc. provides cloud-based, AI-driven customer and employee experience software. Its product suite includes solutions for customer support, sales, marketing, IT service management, and workforce automation. Serving businesses of all sizes globally, Freshworks emphasizes ease of use, rapid deployment, and scalable, integrated platforms. Its business model relies on subscription revenue, product-led growth, and a strong partner ecosystem to deliver innovative, cost-effective digital transformation tools.
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